Sunday, 31 July 2016

1. Open Joint Bank Account with your spouse.2. Open Joint CDP Account with your spouse .3. Open Joint Brokerage Account with your spouse4. Transfer all your investment holding in your personal CDP to this Joint CDP account.Bravo! You have made your spouse passive investor!Now, who is still saying that there is no such thing as passive investor with passive income? LOL!

Quite number of articles written in the cyber world related to Swiber. What you should not do?What you should avoid?You see I saw it coming!All these hindsight experts have shorted Swiber and now laughing to the Bank?Over market cycles bad things will always happen and some companies will fail and die.Every few other days there are people in Singapore tio Cancer. Every few other weeks there are cancer patients who didn't make it and died.Can we avoid or escape?No!But, we can protect ourselves and our family financially so there is less financial stress when bad thing happened to us.This is how risk management and money management play that important role in our life. We are better off to be Ants when we are married with family and kids. How much different in investing?

This image has been share so many times till many have seen until Sianz!But, this is not the truth!There will always be Buyers and Sellers at every completed transactions.

The stock market is weird. One buys, another one sells, someone waits and all three think that they are smart. Now, who is right and who is wrong?Only hindsights will tell the story of real winners and losers.

Commonly known Image

Lesser known Image as seen through the eyes of CW8888 in his real life of investing for past 16 years.

One of the four in the sharing session is not new investor; he and his spouse have been investing. His wife worked as researcher so the couple decided that it is quite obvious that wife will take up the task of researching on stocks and companies.After reading Uncle8888's several postings on Retirement Planning on his company's Chat Zone; he suspected that Uncle8888 could be an experienced old investor who has made it in his investment to be able to retire @ 60. His Goal is to retire early too.Some time in life; luck factor does a part. Uncle8888 was queuing to buy his kopi-o kosong at staff canteen. He came and queued behind and then said "Good Morning, XXXX".Hmmm .. Uncle8888 was surprised by this greeting as he doesn't really know this colleague well from another Division and very seldom interacts with him on any work related matters too.One thing Uncle8888 has just learned besides "No Free Lunch". There is such "No Free Wide and Smiling Greeting from a lesser known".The real motive behind this Greeting is he has some investment questions to ask.

Like any other retail investors who loves passive income like S-REITs; in the sharing session he asked about S-REITs and income strategy. When he discussed on the right questions; he managed to realize what he didn't know the difference between the investing thesis behind growth dividend stocks and income stocks may have actually slow down his investing journey to reach his investing goals to retire earlier than the official Singapore retirement age.

To some retail investors; it is an old cow who has been giving them lots of Milk for so many years. Okay. They may be sad to see it getting sick or may be dying soon; but the experience and feeling is totally different from some investment bloggers or on-lookers looking at it as young Calf waiting for its Milk and/or Meat.Get it?

How many truly understand and able to explain the journey of lifetime investing is a journey of experience of calculated risks, controlling emotions, losses and rewards as mixture as an OLD and NEW investors of stocks holding and portfolio. Hindsight of what if and what else of talks practically useless. At the end of decades of investing; the true outcome did we make it as an OLD investor or forever a reborn NEW investor. That is investing!

Friday, 29 July 2016

One young lady colleague was keen to start investing and asked "Keppel Corp Can Buy Or Not?"Instead of answering Yes or No; Uncle8888 went through 4 hours+ of investing lesson with her and her three other colleagues using Keppel Q1 and Q2's result and transcripts and Oil as case study.She will have to find her own answer as life of long run retail investor starts from learning to find our own answer. The stock market is weird. One buys, another one sells, someone waits and all three think that they are smart.Updated:Hmmm.... Last night new Whatsapp chat of thank you at 21:41

Thursday, 28 July 2016

GIC’s mandate is to achieve good long-term returns. The primary metric for evaluating GIC’s investment performance is the rolling 20-year real rate of return. The goal is expressed in real terms because GIC must, at a minimum, beat global inflation and preserve the international purchasing power of the reserves placed under its management.Over the 20-year period that ended 31 March 2016, the GIC Portfolio generated an annualised real1 return of 4.0% (Figure 1) above global inflation. In nominal USD2 terms, the portfolio generated an annualised return of 5.7% over the 20 years that ended 31 March 2016. This means that US$100 invested with GIC in 1996 would have grown to US$303 today.

Wednesday, 27 July 2016

Kep Corp XD today!Looking at the chart on yield on initial investment cost; it is like going one full circle to 2002 again.Cyclic investing!The days of fat divestment is over and now left with much smaller M1 and K1. Not much fat left.

Tap 3 and its associated War Chest will decide how much will be left behind.Old man before crossing the Road must look left, look right, look left, look right, look carefully before stepping out. Sad truth!

One Chart that tells the whole story behind a lifetime of earned income after tax as salaried employee for more than 39 years and supplemented by more than 16 years as retail investor in short-term trading and long-term investing in local SGX only.See the real thing and truth behind wealth building as retail investor; it may not be what we are expecting when we first started investing with lots of self-confidence - COMPOUNDED GROWTH year after year over market cycles of Bulls and Bears.

Sunday, 24 July 2016

True Story!This debate happened many years ago at one cbox.Why don't you cut losses?What is the reason?To recover back some capital to re-invest.Hmmm ....What if we have plenty of capital in the War Chest, we still need to cut losses to raise more cash to follow the Street's advice?Dumb or Smart?What you think?

Back to Hiap Joo's Banana cake shop again last Friday; this time he went early to grab those fast selling out and limited buns. You can get banana cakes most of time as they keep topping up stocks but not for buns. How come? Lower margins for buns.Otah and Tau Sar buns are solid. Bought some and ate them while they were still hot at the opposite coffeeshop's with your kopi, kopi and Teh. :-)Quote : "Saw one nearby eating outlet, Triple K selling Pepper Root & Oxtail soup. Next time at JB Central will try this one."We went to Triple K for Pepper Root & Oxtail soup but was told that the soup was still cooking and expected to be ready in one hour time for lunch. Sianz! Got to come again next time.

After a few market cycles; Uncle8888 is rather convinced that for retail investors it is about Market Timing and Time in the Market for healing and rewarding.The last GFC in 2008/2009, it was about financial crisis. This crisis is about O&G crisis.Those have invested in O&G stocks in the recent years are in for rude shock and years of pains!Uncle8888 has overheard the pain felt by some retail investors in Kep Corp. It was that bad and they have lost so much!How about Uncle8888's feeling on his Kep Corp since it is his largest holding in his portfolio, longest holding period, highest yield and highest rounds of trading.

As retail investors; we are on our own and remember there is no Holy Grail method that will fit into us. Yes, we can search for ideas and references but still there is no Holy Gail method. Stop believing! You think Value Investing sure made money? You must quickly go and learn har.When market crashes; value investing made simple. Get it?Is this market timing and time in the market to get into Value Investing?How different from value investing that are normally advocated in the printed and cyber world?When market crashes; we get the right "Value" stocks and spend enough time to get the value from them. Not Value Investing? Then what?When we get our market timing wrong on our positions and then we spend the rest of our time in the market feeling the pain, losses and frustration and then start or re-start to believe in Value Investing may be the way to go.The Real Person. The Real Market Timing and Time in the Market. The Real Outcome. The Joy and The Pain in the Ass!See for yourself closely and see whether you get it?

Saturday, 23 July 2016

Even veterans can find it so difficult to time the Market after years of riding market cycles. Time flies! It was more than one year when he sent me that note on 25 Jun 2015. Since then, Market didn't crash or drop much.Last check with him few weeks ago; he is still 100% out of equity market and collecting interests from short term notes.

With Kep Corp 50% cut in dividends in 2016 H1 from $0.12 in 2015 to $0.08; he is expecting similar cut in 2016 H2. Uncle88888 is also expecting weaker dividends from SCI. He has revised his number for 2016 and 2017 and more homework is expected in 1st two years of his retirement to close the gap.

The Real Person with conversation with real person on his retirement adequacy.He is 63. Currently, he is re-employed by his company on yearly basis and he is still thinking of retiring sooner; but he doesn't trust Mr. Stock Market to invest for income as retirement cash flow. So how? He is thinking hard and harder!He bought landed property in the early days and down graded two years ago to fully paid condo. He made net profit of $1.2M cash to prepare for his retirement.We often read that investing for income is not difficult; but on case by case basis; the real person with lots of money and the FEAR of losing large sum of money is also real has made investing so much harder. Right?

Thursday, 21 July 2016

The Real Person!We use this method to invest on Kep Corp. In fact, this method was successfully used by Jessie Livermore.

In the famous book entitled Reminiscences of a Stock Operator, Jessie Livermore said: “After spending many years in Wall Street and after making and losing millions of dollars I want to tell you this: It never was my thinking that made the big money for me. It always was my sitting. Got that? My sitting tight! It is no trick at all to be right on the market. You always find lots of early bulls in bull markets and early bears in bear markets. I've known many men who were right at exactly the right time, and began buying or selling stocks when prices were at the very level, which should show the greatest profit. And their experience invariably matched mine -- that is, they made no real money out of it. I found it one of the hardest things to learn.But it is only after a stock operator has firmly grasped this that he can make big money. It is literally true that millions come easier to a trader after he knows how to trade than hundreds did in the days of his ignorance.”Men who can both be right and sit tight are uncommon.It is more commonly known as Timing the Market and Time in Market method.

U.S. stocks closed higher Wednesday, with the Dow ending at a record high for the seventh day in a row as better-than-expected earnings boosted optimism on Wall Street.

The Dow Jones industrial average extended gains for nine consecutive days for the first time since 2013, with Microsoft contributing most to the upside. The S&P 500 closed at a new record level, led by technology which had its best day in 16 years. The Nasdaq composite had its highest close of the year, helped by a 2 percent gain in biotech.

Wednesday, 20 July 2016

Although many retirees (66%) reported that they were living the lifestyle that they wanted in retirement, a little more than half (57%) looked back on the years before retirement and wish they had done more to prepare, according to a study by Fidelity Investments.

There’s a lesson here for people who have not yet retired but are thinking about it.

“Workers approaching retirement often look to their peers who have already gone through the process for valuable lessons learned,” said Steve Deschenes, executive vice President of Fidelity Institutional Retirement Services Company, in a news release.

“Those living in retirement now can provide valuable insight to people getting ready to make that transition, from knowledge of the basic fundamentals such as the key elements of a successful income plan, to identifying resources that can help with critical decisions that need to be made.”
“This can have a dramatic impact on the quality of life today’s pre-retirees will experience when they retire.”

Uncle8888 is an Ant who follows China's Ancient Wise Man's words ...

"The general who wins the battle makes many calculations in his temple before the battle is fought."

Sun Tzu said:

Those who understand these fundamentals will win.

Those who don't will be defeated.

Preparing for retirement is like preparing for a long battle so he has made many calculations again and over again assuming different scenarios.

So far, after many years of reading books and articles on retirement planning; he has found that this model has very good chance of meeting his retirement goals and doesn't depend too much on the Mood of Mr. Market. He has transformed the Myth Of Passive Income into Reality with his Three Taps Solution.

[NEW YORK] The Dow finished at another record on Tuesday, but disappointing earnings from Netflix weighed on the tech-rich Nasdaq.The Dow Jones Industrial Average advanced 0.1 per cent to 18,559.01, to set a record for the sixth straight day.The broad-based S&P 500 lost 0.1 per cent at 2,163.78, while the Nasdaq Composite Index shed 0.4 per cent to 5,036.37.

Updated with GLP; the new number is 56!How do we put our eggs in the basket?Put all eggs or Don't Pull all eggs in one basket?How did Uncle8888 put all his eggs into one basket?He went out to find as many eggs as he could find. As of now, he has found 56 eggs!He threw away most of his eggs and leave a few eggs in one basket and watch it closely.The Moral Of Story ...Start with Diversification and then end with Concentration. Too Chim?

An early morning smile after reading this by one of those investment gurus teaching retail investors in blogosphere.How many retail investors think that they have the investing capital to accumulate up to 35 stocks in their portfolio and STILL think they are not diversified?Don’t Put all your eggs into one basket .......Quote : "Teng, one of Singapore’s most successful boutique fund managers, is famous for “putting all his eggs into one basket”. During his tenure at Target Asset Management, he only invested in 35 stocks."

Teaching method and executing method are two different skills - CW8888

The Dow Jones industrial average ended about 15 points higher, with Goldman Sachs and Home Depot contributing the most gains. The blue-chips index extended its winning streak to seven days, with a fifth straight day of record closes. The S&P 500 also ended up about a quarter of a percent at a record high, led by information technology and consumer discretionary sectors.

Sunday, 17 July 2016

We are among those many brave ones who have travelled the normal path . We have chosen to be bombed a few times over our life. Some of us might be bombed just one or two times at most while the rest of us are bombed until Chow Ta; but we just restart our finance all over again! No regret! Life is not just about having MORE and MORE money! At the end of our bombing journey; many of us still manage to be quite OK financially.Sometime, Uncle8888 is wondering how he did it?HURRAY!Well done. Folks!Give yourself a HIGH FIVE if you have completed your bombing Journey!We are the Role Models for our future generations!

Saturday, 16 July 2016

He didn't know about Group ToTo until he had lunch with Uncle8888's ToTo Gang last Wed and decided to be part of the Gang. Created a new Whatapps group for this Focus Group. :-)Wah! Group ToTo is not commonly know to ToTo punters or many punters don't wish to share. Which is which?Uncle8888 is damn serious when ToTo Jackpot prize hits $4m and above.Group ToTo in action!

With Uncle8888's fixed monthly salary; it is simple to compute his lifetime of earned income after tax from Aug 1977 to 15 Sep 2016; it is over 38 years of using his Human Asset to generate cash flow comparing to over 16 years of using his Financial Assets to build up another source of wealth and cash flow for the rest of his life.

One consolation prize after spending more than 16 years in SGX, our local stock market; he realized and quite confident on his current investing strategy and war chest; he should be able to survive for the next 5 to 10 years in the stock market unless he becomes dementia before 65 to 70.

Wealth Accumulation Rate P.A. From

Human Asset vs. Financial Assets:

Over 38 years: 68% as of 15 Sep 2016

Over 16 years: 32% as of 15 Jul 2016

The most important thing that he realized that it is better to avoid large losses than trying to win big by taking higher bet. Recovering from large losses is painful and may take a very long time just to breakeven.

Do anyone think that Uncle8888 is a crazy man who is going survive for his next 1 to 2 decades based on a Myth?It is up to us to build up our own model of Sustainable Retirement Income For Life to make it as passive as possible and doesn't turn this activity into another form of part-time job working on a full time work-week.CW8888's Three Taps Solution

US stocks pushed to new records Thursday, lifted by JPMorgan Chase's strong earnings and hopes for more stimulus from central banks.The Dow Jones Industrial Average gained 0.7 percent at 18,506.41, its third straight all-time high.

The broad-market S&P 500 extended its record streak to a fourth day, advancing 0.5 percent to 2,163.75. The tech-rich Nasdaq rose 0.6 percent to 5,034.06.

Equity markets shrugged off the Bank of England's decision to hold interest rates and stimulus unchanged in its first meeting after Britain voted to leave the European Union. The bank though signalled it could come at its August meeting.

U.S. stocks closed near the flatline Wednesday but managed to eke further into record territory.

The Dow Jones industrial average closed about 24 points higher, at an all-time high, and notching a four-day winning streak. The S&P 500 set all-time intraday highs, along with the Dow shortly after the open, and closed barely above the flatline. The Nasdaq composite lagged, closing about 17 points lower.

When you have spend enough time reading, reading and reading many finance and investment blog postings over the years; but forget about those blog posts that have commercial interests in selling you courses.

Do you realise that Mr Market will always have his way to show us the right way to build our wealth from the stock market is through investing in companies growing their business revenues, cash flow and profits either through expanding, enhancing or innovating their products and services offering to their global consumers and producers?

Yesterday, Uncle8888 was talking to this 62+ old years colleague who has been re-employed this year for another year on one-year contract basis.

He has given up on stock market after losing so much money in the past bear markets with a few ZERO baggers and expecting one more coming soon, EZRA.He asked me about EZRA as he got large position in it. When we looked at the chart; it is quite obvious!Most of us will lose money in the stock market. That is the only truth!Losing is part of the Game. Don't Give Up Yet!What we read and hear in newspaper ads and in the cyber world are just advertisement. Not any different like slimming and six-pack ads in one easy way. The truth, "Gurus" who are making money from investment courses don't lose money. Teaching method and executing method are two different skills.Uncle8888 lost money; but he never has any doubt that he will give up on stocks and even stick to just stocks listed in SGX. No global equities diversification. No Gold. No Silver. No investment properties. Just local stocks and Sing dollars. He is still surviving. Let see for how long he can stay in this mode.Simple may not be equal to ineffective.Uncle8888 knew it in his heart as he tracks every details; count and measure everything that can be effectively pointed to his performance and strategy for revision and improvement. No illusion!

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About Me

I am 60+ yrs old uncle living in HDB heartland who has retired @ 60 on 30 Sep 2016.
I have been doing long-term investing and short-term trading in Singapore stock market only since Jan 2000 and now becoming full-time retail investor. So I am that Panda or Koala in the investment world; but I am still surviving well in the wild.
I have two sons and one daughter; two working adult children and the youngest son is currently in his 1st year SUTD.
I am currently executing my Three Taps solution model to maintain sustainable retirement income for life till 2038
Cheers!
Last updated: 16 Oct 2016

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